Our first hypothesis states that firms qualifying their
bonus plans under 162(m) will compensate their CEOs less for extreme performance.
Lynn Franco, an economist with New York-based The Conference Board who conducted the study, said the primary reason for the decrease lies in the degradation of basic employee benefits: wages, promotions,
bonus plans, pension plans, medical coverage and other corporate benefits.
Briefly, earnings-based
bonus plans and restrictive debt covenants can create economic incentives for managers to manipulate earnings.
It can include profit-sharing and stock
bonus plans.
I've worked under
bonus plans for more than 25 years," Mach said in the initial meeting, "and I'm a believer that they work.
The pact eliminates the existing metal price and plant-specific
bonus plans and calls for negotiations of new plant-specific
bonus plans at all locations.
In relation to previous years' bonus awards that have been deferred under the terms of the Annual
Bonus Plans the elements relating to the 2010 and 2011 bonus that were deferred into shares will lapse in accordance with the rules of the plan, as will outstanding awards under the Long Term Incentive Plans & the One Aviva Twice the Value (OATTV) plan.
With most banks expected to announce their
bonus plans next week, a cutback in bonus pools is expected by industry observers.
The employer in this memorandum sponsored multiple
bonus plans that paid cash awards to employees.
ADVERTISING and marketing giant WPP yesterday faced a nearrevolt from shareholders over their multi-million pound
bonus plans for top bosses as they reported "below budget" revenues.
Section 162
bonus plans have also been making a comeback at many private companies.
Consumers' desire for unrealistic high returns on their investments has been the driving force behind the push for more profits, outrageous salaries for chief executive officers, golden parachutes,
bonus plans, stock options, etc.
